A Senate backup plan to raise the U.S. debt ceiling and avoid default could still lead to a negative outlook on the country's ratings, Moody's said, thus highlighting the plan's failure to substantially reduce the deficit.

The numbers being discussed in terms of any possible deficit reduction from this plan are not very large. Therefore, this plan might still result in a negative rating.

If we can not curb our spending the "house of cards" is likely to collapse and soon too.